Abengoa launches EUR 500 million green bond offering

Abengoa Greenfield, S.A., a subsidiary of Spanish group Abengoa, has launched an inaugural €500 million green bond offering aimed at financing eligible green energy projects.

The new bonds, planned in euros and U.S. dollars, represent Abendgoa’s first green bond issue and the first European high yield green bond of this kind, the company said. Maturing in 2019 and with final tranching to be determined, the green bond will be guaranteed by the company and several of its subsidiaries.

Abengoa will offer the bond and related guarantees to eligible traditional high yield investors as well as dedicated socially responsible investments buyers who have a specific mandate or portfolio for buying green bonds, the company said.

Vigeo, the leading European expert in the assessment of companies and organizations with regard to their practices and performance on environmental, social and governance issues, has assessed the bond’s sustainability credentials.

Abengoa said it expected to use the net proceeds to finance, in whole or in part, eligible green projects that meet certain environmental, social and governance criteria set by the company and Vigeo until the long-term financing funds associated to those projects are obtained.

The company added that the transaction was aimed at financing its existing and future eligible green energy projects that promote sustainability while optimizing financial costs and diversifying sources of funding.

Abengoa announced on Monday that its Abengoa Yield unit had acquired a combined capacity of 181 MW of renewable energy assets in Spain and Uruguay.

In addition, Abengoa Yield’s Solana Solar Power Plant in Arizona won two Arizona Forward Environmental Excellence Awards on Saturday recognizing the facility as an innovative, clean-energy solution.

Solana, the largest solar parabolic trough plant in the world, received the Governor’s Award for Energy & Technology Innovation as well as the President’s Award, both part of Arizona Forward’s 34th Annual Environmental Excellence Awards. The winners were announced at the Arizona Forward Award Gala held September 20.